As a leader, how will YOU manage risk and opportunity?
In case you missed it, Fed Chairman Ben Bernanke again visited 60 Minutes on Sunday, December 5, 2010. In a candid video interview, he shared his views on the economy, what he and the Fed have done, and what they may still have left to do.
As we look towards 2011, the greatest external factor facing our businesses is will be the economy. Watch the video to hear more about jobs, inflation, interest rates, the money supply, and how one leader views the importance of acting in an era of risk.
As a leader, how will YOU act in an era of risk?
Whether we are entrepreneurs or working inside of a company, how we deal with risk and when we deal with it are key factors that will shape our businesses in 2011.
We may be operating on a global stage or focusing in closer to home but either way the process of assessing risk and responding to it will have a major impact on the future success of our businesses.
Research
The first step in the process is to do your homework. Assessing your risks, understanding what factors influence them, and looking for a balance between risk and opportunity lays the foundation for both strategy and action.
Realign
Once your foundation is in place the next step is to line up your priorities. Based on your research, what actions will create the best possible reaction. Move them up the list. Not every risk can be managed and not every action packs the same punch. By focusing on the managing high impact risks and opportunities first, you lay the most likely path to success.
Respond
Now that you have decided what to do, don’t wait. Do it! Delaying high priority strategies magnifies uncertainty and that is the number one thing that can slow you down or bring you to a crashing halt. We see this everywhere from the economy to the boardroom. Communicate your plan, gain buy in at every level and forge ahead.
Revisit
Time changes all things – including strategy. Your mission may be a constant, but how you a achieve it needs to be dynamic. Build metrics and milestones into your system to assess what is working and what is not. Look at your priorities. Are they still ranked in the proper order? Are you supporting them based on the order of importance? If something mission critical has changed – change with it.
Repeat
That’s right – start all over again. There may not ever be a way to eliminate risk – but there is always a way to create an opportunity if you are committed to the process of doing so.
Thanks for stopping by. Stay Tuned…
I’ll be sharing more tips to help you get ready for 2011 throughout the month of December.
Joan Koerber-Walker
About the Author:
An entrepreneur, author, speaker and corporate advisor, Joan Koerber-Walker’s journey has spanned from corporate America to entrepreneurship and non-profits, as well as into community leadership and into the halls of Washington D.C. To learn more about managing risk and creating opportunity, you can contact her by clicking here.